Professionals Armidale 
by Stephen Ramage, Inhouse Auctioneer
Are you new to auctions or do you just need an auction language recap?
Navigating the auction process can be difficult to master, especially without knowing the terminology used in the fast-paced world of auctions. That’s why we have developed this auction glossary. This is a valuable tool to help you bid with more confidence.
Absentee Bid
When you can’t attend an auction in person, but still want to place a bid, an absentee bidder can place a bid on your behalf.
Addendum
A supplementary document or announcement that provides additional information or updates about the auction or specific lots.
Appraisal
An appraisal is a formal evaluation of the fair market and/or insurance value of a property. The fair market value is often reached by comparing the property with recent sale prices for similar properties in the area and analysing the property’s condition. Insurance value reflects what it would cost to replace the property.
As Is
Almost all property for sale at auction is offered “as is,” meaning that the property is sold with all existing faults and imperfections.
Auctioneer
The person responsible for conducting the auction, accepting bids, and facilitating the sale of the lots.
Auction Room
The physical location where the auction takes place, where bidders gather to participate.
Bid Increment
A bid increment is the amount by which an auctioneer increases the bidding during the auction process. Generally, an auctioneer will request bids of about 10% higher than the previous bid.
Bidder Registration
The process of providing personal information and obtaining a bidder number or paddle to participate in the auction.
Buyer’s Premium
The buyer’s premium refers to the amount above the final price that is paid as part of the total purchase price.
Fall of the Hammer
The moment when the auctioneer strikes the gavel or declares the lot as sold, indicating the end of bidding for that particular item.
Fair Market Value
A term frequently used by appraisers referring to their judgment and opinion about an object’s likely sale price if offered by a willing seller to a willing buyer. Since the auction process is open to all bidders, a sale at auction is considered to be a measure of Fair Market Value.
Fair Warning
A warning sometimes given by the auctioneer that the hammer is about to come down on a lot. The fair warning offers one last chance to increase the bidding. If there are no subsequent bids, the auctioneer’s hammer falls and the sale is completed.
Gavel
Another name for the auctioneer’s hammer that is used to close the bidding.
Hammer Price
The final bid price at which the auctioneer’s gavel falls, signifying the acceptance of the highest bid and the sale of the lot.
Lot
An individual item or property being offered for sale at an auction.
No Sale
When a lot does not receive any bids meeting the reserve price or fails to sell for any other reason.
On the Market
When the bidding reaches or exceeds the reserve price, and the property is now available to be sold to the highest bidder.
Opening Bid
The initial bid made by a bidder to start the bidding process for a particular lot.
Paddle
An object displaying the number assigned to a bidder when he or she registers at the auction. To place a bid, simply raise your paddle until the auctioneer acknowledges you. If you win the auction, your paddle number is recorded alongside your bid. To pay for your purchase, you will need to bring your paddle to the payments counter.
Passed-In
If there are no bids on a property, or if the bidding doesn’t reach the reserve price, the property is ‘passed in’. This means that it is unsold and remains the property of the owner.
Reserve Price
The minimum price set by the seller, below which the property will not be sold. The auctioneer will typically start the bidding at or above this price.
Vendor
The seller of the property or lot being auctioned.
Withdrawn
When a lot is removed from the auction before it is offered for sale, usually due to a change in circumstances or the seller’s decision.
These are just some of the commonly used terms in property auctions. The specific terminology may vary depending on the auction and location.
Upcoming Auctions
Find out more about our upcoming auction dates and properties going under the hammer. To pre-register to bid at our next auction or to discuss the benefits of selling via auction contact us at (02) 6772 4549 or via reception@proarmidale.com.au
About Stephen
Stephen has more than thirty years experience, working in the Armidale Real Estate Industry since 1989. Stephen is licensed in real estate, auctioneering, strata management, and stock & station.
He describes himself as an outdoorsy kind of person with a love for caravanning, fishing, and mountain bike riding. Stephen participates in an annual charity fundraising cycle for the Great Cycle Challenge Australia.
The Great Cycle Challenge is a national Children’s Medical Research Institute (CMRI) fundraising initiative held throughout the month of October.
Stephen says that the key to his success is honesty.
Be honest with people and don’t try to hide anything or make up answers to questions you don’t know. Tell it how it is.
Stephen Ramage
Stephen grew up in Guyra, once married he moved to Armidale where he started a family of his own.
Read more about Stephen in our Spotlight Interview.
